Policy Backgrounders

American Families Plan

April 30, 2021

As the President indicated when he released his “American Jobs Plan” in March, he presented his “American Families Plan” on April 28, the day of his address to Congress. This new plan is additive with the previous one, and would spend (including through tax cuts—$1 trillion in spending strictly defined, and $800 billion in tax cuts) an additional $1.8 trillion, which is proposed to be financed by tax increases on upper-income individuals. (The $2 trillion American Jobs Plan was to be paid for by increased taxes on corporations.) Again, this plan is claimed to be fully paid for over 15 years, with continuing tax increases beyond that time providing net deficit reduction.